Istanbul, February 25, 2014 - Climate
change is of increasing concern to businesses worldwide, especially in
Turkey, where water scarcity is a growing challenge. But knowing what to
do about it can be daunting, especially for small and medium-sized firms,
according to ground-breaking research funded by the European Bank for Research
and Development (EBRD) and International Finance Corporation (IFC).

Their new report, Pilot Climate Change Adaptation Study: Turkey, lays
out a series of priority actions for Turkish businesses. The study aims
to help companies manage the risks and opportunities associated with climate
change, making it possible for them to identify measures that make business
sense and to prepare for the changes ahead.

“The private sector in Turkey will need
to be more climate-resilient, and with this research it can prepare for
climate change in ways that also make good business sense,” said Stephanie
Miller, Director of Climate Business at IFC, a member of the World Bank
Group.

“There are significant opportunities for
Turkish businesses to invest in climate-resilient technologies and practices,
which can also generate a good return on investment,” said Craig Davies,
Senior Manager for Climate Change Adaptation at the EBRD. “We are also
engaging with other international agencies and financial institutions in
Turkey to further strengthen the country´s climate resilience frameworks
and develop new financing mechanisms.”

The report, undertaken in conjunction with
the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and the
Turkish Ministry of Environment and Urbanization (MoEU), describes water
scarcity as an increasing risk for Turkey due to climate change and its
impact on precipitation, including more frequent droughts and hot spells.

“We are pleased to participate in this study
that highlights the role of the private sector in addressing Turkey’s
climate change challenges,” said Gürcan Seçgel, Chief of the Climate Change
Division in the Ministry of Environment and Urbanization.

“Businesses in Turkey welcome the
practical information and recommendations on how to manage climate change
impact and leverage new commercial opportunities,“ said Rifat Hisarcıklıoğlu,
President of the Union of Chambers and
Commodity Exchanges of Turkey.

Some 45 percent of Turkish businesses
surveyed said they had been significantly affected by a climate-related
event in the last three years. Most businesses contacted by the researchers
said they lacked information about how to identify and implement concrete
actions to prepare for a changing climate.

To address this, the study identified
and prioritized specific, market-based tools and steps to improve water
efficiency, such as drip irrigation and drought-resistant seeds for agriculture,
with a potential return on investment of up to 64 percent. Improved process
efficiency, recycling, and water re-use can provide potential returns of
up to 30 percent in the agri-processing, manufacturing, and municipal sectors.

Climate-smart solutions for buildings, such
as heat-reflective glazing, rainwater harvesting, surface water drainage
and improved ventilation, can also have significant impacts with manageable
upfront costs. To view the report, please see: www.ifc.org/climaterisks.

About IFC

IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org.